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Representatives of U.S. consumer
interests welcomed efforts by the Commerce Department announced yesterday to
seek a long-term solution to the prolonged and complex dispute with Canada
over softwood lumber imports. American Consumers for Affordable Homes (ACAH),
an alliance of 18 large national organizations and companies representing more
than 95 percent of U.S. lumber consumption, said however that it remains
opposed to imposing any border measures -- import or export taxes or quotas --
that only end up harming consumers.
The Commerce Department imposed 27 percent countervailing and antidumping
duties on lumber imports last summer, duties that consumers consider a
federally imposed sales tax on lumber that harms homebuyers and impacts
housing affordability in the U.S.
The duties were imposed at the urging of a few large U.S. producers, led
by International Paper, Potlatch, Plum Creek, Sierra Pacific, Temple Inland,
and southern land owners forming the Coalition for Fair Lumber Imports,
alleging that they had been harmed by Canadian softwood lumber, based on a
perceived threat to the industry, although no evidence of actual injury was
found.
"The new Commerce Department initiative, in the form of policy bulletins
dictating forest practice changes the U.S. wants Canada to make, is certainly
welcomed to restart discussions and seek a resolution to this issue" said
Susan Petniunas, spokesperson for ACAH. "However, we remain opposed to any
efforts to tax U.S. lumber consumers, including import or export taxes."
"The U.S. requires at least a third of its lumber in the form of imports,
and Canada is the best source for it," she said. "We should move to free and
open markets between our two countries."
In the policy draft, Commerce Undersecretary Grant Aldonas said he would
seek input from lumber producers. "It is equally important that he also seek
input from those who use lumber and consumer interests, something that ACAH
will aggressively pursue," Petniunas said.
Petniunas said that recent proposals by Seattle-based forest producer
Weyerhaeuser, the British Columbia government, and the British Columbia
forestry industry association also are each a long way from relieving the
burden of the lumber dispute on consumers.
"Some of these proposals call for Canada to drop or suspend its appeals of
the U.S. countervail and antidumping duties before the World Trade
Organization and the North America Free Trade Agreement panels," she said.
"We believe that would be a significant error on the part of Canada. Canada
has already won major decisions earlier this year, and we are convinced that
if the appeals are allowed to conclude in a timely manner, Canada will win
again. This is the best route to free trade in lumber, and we hope Canada
will resist any temptation to stop those appeals, even if it does hold
discussions or look at interim measures."
She noted that the Commerce proposal clearly indicates that it is aware of
the roles the appeal processes play in an eventual solution to the problem,
and that the ACAH believes that one reason Commerce is pushing for a solution
now is because it too believes it will continue to lose in the WTO and NAFTA.
"Unfortunately, the Coalition's attempt to fix prices backfired, and
lumber prices have dropped significantly," Petniunas added. "All they have
succeeded in doing is creating great volatility in the market once again, and
to continue their negative impact on housing affordability."
"The final 27 percent countervailing and antidumping duties on finished
lumber for framing homes and remodeling, even at lower lumber prices, may
increase the average cost of a new home by as much as $1,000," she said.
"Based on information from the U.S. Census Bureau, that additional $1,000
prevents as many as 300,000 families from qualifying for home mortgages."
Consumers have some strong support on Capitol Hill. More than 100 members
of the U.S. House and Senate have signed resolutions or written letters to
President George W. Bush over the past two years, indicating their support for
free trade in lumber, and urging no new taxes or penalties on consumers.
Industries that depend on lumber as an input and that oppose import
restrictions include: manufacturers of value-added wood products, lumber
dealers, manufactured and on-site home builders, and remodeling contractors
and individuals. These industries employ more than 6.5 million workers, 25 to
one when compared with those in the forestry industry.
Members of ACAH include: American Homeowners Grassroots Alliance,
Catamount Pellet Fuel Corporation, CHEP International, Citizens for a Sound
Economy, Consumers for World Trade, Free Trade Lumber Council, Fremont Forest
Group Corporation, The Home Depot, International Mass Retail Association,
International Sleep Products Association, Leggett & Platt Inc., Manufactured
Housing Association for Regulatory Reform, Manufactured Housing Institute,
National Association of Home Builders, National Black Chamber of Commerce,
National Lumber and Building Material Dealers Association, National Retail
Federation, and the United States Hispanic Contractors Association.

Representatives of U.S. consumer
interests welcomed efforts by the Commerce Department announced yesterday to
seek a long-term solution to the prolonged and complex dispute with Canada
over softwood lumber imports. American Consumers for Affordable Homes (ACAH),
an alliance of 18 large national organizations and companies representing more
than 95 percent of U.S. lumber consumption, said however that it remains
opposed to imposing any border measures -- import or export taxes or quotas --
that only end up harming consumers.
The Commerce Department imposed 27 percent countervailing and antidumping
duties on lumber imports last summer, duties that consumers consider a
federally imposed sales tax on lumber that harms homebuyers and impacts
housing affordability in the U.S.
The duties were imposed at the urging of a few large U.S. producers, led
by International Paper, Potlatch, Plum Creek, Sierra Pacific, Temple Inland,
and southern land owners forming the Coalition for Fair Lumber Imports,
alleging that they had been harmed by Canadian softwood lumber, based on a
perceived threat to the industry, although no evidence of actual injury was
found.
"The new Commerce Department initiative, in the form of policy bulletins
dictating forest practice changes the U.S. wants Canada to make, is certainly
welcomed to restart discussions and seek a resolution to this issue" said
Susan Petniunas, spokesperson for ACAH. "However, we remain opposed to any
efforts to tax U.S. lumber consumers, including import or export taxes."
"The U.S. requires at least a third of its lumber in the form of imports,
and Canada is the best source for it," she said. "We should move to free and
open markets between our two countries."
In the policy draft, Commerce Undersecretary Grant Aldonas said he would
seek input from lumber producers. "It is equally important that he also seek
input from those who use lumber and consumer interests, something that ACAH
will aggressively pursue," Petniunas said.
Petniunas said that recent proposals by Seattle-based forest producer
Weyerhaeuser, the British Columbia government, and the British Columbia
forestry industry association also are each a long way from relieving the
burden of the lumber dispute on consumers.
"Some of these proposals call for Canada to drop or suspend its appeals of
the U.S. countervail and antidumping duties before the World Trade
Organization and the North America Free Trade Agreement panels," she said.
"We believe that would be a significant error on the part of Canada. Canada
has already won major decisions earlier this year, and we are convinced that
if the appeals are allowed to conclude in a timely manner, Canada will win
again. This is the best route to free trade in lumber, and we hope Canada
will resist any temptation to stop those appeals, even if it does hold
discussions or look at interim measures."
She noted that the Commerce proposal clearly indicates that it is aware of
the roles the appeal processes play in an eventual solution to the problem,
and that the ACAH believes that one reason Commerce is pushing for a solution
now is because it too believes it will continue to lose in the WTO and NAFTA.
"Unfortunately, the Coalition's attempt to fix prices backfired, and
lumber prices have dropped significantly," Petniunas added. "All they have
succeeded in doing is creating great volatility in the market once again, and
to continue their negative impact on housing affordability."
"The final 27 percent countervailing and antidumping duties on finished
lumber for framing homes and remodeling, even at lower lumber prices, may
increase the average cost of a new home by as much as $1,000," she said.
"Based on information from the U.S. Census Bureau, that additional $1,000
prevents as many as 300,000 families from qualifying for home mortgages."
Consumers have some strong support on Capitol Hill. More than 100 members
of the U.S. House and Senate have signed resolutions or written letters to
President George W. Bush over the past two years, indicating their support for
free trade in lumber, and urging no new taxes or penalties on consumers.
Industries that depend on lumber as an input and that oppose import
restrictions include: manufacturers of value-added wood products, lumber
dealers, manufactured and on-site home builders, and remodeling contractors
and individuals. These industries employ more than 6.5 million workers, 25 to
one when compared with those in the forestry industry.
Members of ACAH include: American Homeowners Grassroots Alliance,
Catamount Pellet Fuel Corporation, CHEP International, Citizens for a Sound
Economy, Consumers for World Trade, Free Trade Lumber Council, Fremont Forest
Group Corporation, The Home Depot, International Mass Retail Association,
International Sleep Products Association, Leggett & Platt Inc., Manufactured
Housing Association for Regulatory Reform, Manufactured Housing Institute,
National Association of Home Builders, National Black Chamber of Commerce,
National Lumber and Building Material Dealers Association, National Retail
Federation, and the United States Hispanic Contractors Association.

American Consumers for Affordable Homes
(ACAH) today called on the U.S. International Trade Commission (ITC) to focus
on how border taxes, quotas, price controls and other trade distorting
measures, particularly the 27 percent duties recently imposed on Canadian

Congressmen Jim Kolbe (R-AZ) and Steny
H. Hoyer (D-MD) have introduced an updated concurrent resolution calling on
President George W. Bush to pursue discussions with the Canadian Government to
"promote open trade between the United States and Canada on softwood lumber,
free of trade restraints that harm consumers."
The resolution aims to:
ensure a competitive North American market for softwood lumber;
ensure free trade regarding softwood lumber between the U.S. and Canada;

A bi-partisan resolution (Sen. Con.
Res. 135) introduced in the U. S. Senate late yesterday (Thursday) by Senators
Don Nickles (R-OK), Jon Kyl (R-AZ), Pat Roberts (R-KS), James Inhofe (R-OK),
Jim Bunning (R-KY), Bob Graham (D-FL), Evan Bayh (D-IN), Chuck Hagel (R-NE),
Jean Carnahan (D-MO) urges President Bush to pursue discussions with the
Canadian Government to "promote open trade between the United States and
Canada on softwood lumber, free of trade restraints that harm consumers."
The World Trade Organization (WTO) found on July 26 that the Department of
Commerce action imposing preliminary countervailing duties a year ago on
Canadian softwood lumber imports should be overturned, and is in violation of
WTO's rules. That announcement is expected to be officially made next month
and could be followed by three months of appeals.
A similar WTO challenge has been made by Canada on the preliminary
antidumping duties and is expected to be known in August. Today's resolution
asks the Administration not to intervene to impede the current challenges by
Canada in the WTO and North American Free Trade Agreement (NAFTA) to determine
whether the U.S. countervailing and antidumping duties are legal under
international trade rules.
The duties are harming U.S. consumers, according to ACAH spokesperson
Susan Petniunas. "The final 27 percent countervail and antidumping duties
imposed last May on finished lumber for framing homes and remodeling, may
increase the average cost of a new home by more than $1,000," she said. Based
on information from the U.S. Census Bureau, that additional $1,000 prevents
more than 300,000 families from qualifying for home mortgages."
The U.S. Department of Commerce imposed the duties in May after the
International Trade Commission (ITC) found that there was a potential for a
"threat" to U.S. lumber producers from Canadian lumber imports. The ITC also
concluded, however, that there was no evidence that Canadian lumber imports
had harmed the U.S. industry at that time. The duties have been opposed by a
broad-based alliance of consumer groups, trade organizations, and companies
that represent more than 95 percent of U.S. softwood lumber consumption,
American Consumers for Affordable Homes (ACAH).
"The duties amount to a federally imposed 27 percent sales tax on
first-time homebuyers," said Petniunas. "Consumers' interests should be a
major factor considered by the Administration, and we appreciate the Senators
urging President Bush to do so," Petniunas said. "These duties hurt our
ability to provide affordable housing, and jobs within lumber consuming
industries."
Because there are not enough trees available to produce framing lumber for
home building in the U.S., Canadian lumber imports are absolutely vital for
the construction of affordable new homes, and to make improvements on existing
homes in America. The U.S. relies on Canada and other sources for
approximately 37 percent of the lumber it needs.
Led by International Paper, Potlatch, Plum Creek, Sierra Pacific, Temple
Inland and southern landowners, the Coalition for Fair Lumber Imports filed
petitions with the U.S. Commerce Department more than a year ago alleging that
domestic lumber producers had been harmed by Canadian softwood lumber imports
and asking for countervailing and antidumping duties.
"Since 1983, some of the large U.S. producers and landowners have
periodically charged Canada with subsidizing its lumber industry, and they
have consistently lost when Canada has appealed preliminary decisions,"
Petniunas said. "The July 26 WTO ruling that there is no illegal subsidy of
lumber by Canada continues to show that the U.S. actions are not based on the
facts. We believe the Commerce Department will continue to get failing grades
from on-going WTO and NAFTA reviews of their actions over the past year."
Similar resolutions were introduced last year and the year before urging
free trade on Canadian lumber. H. Con. Res. 45 and S. Con. Res. 4 garnered
more than 110 sponsors. Members of the U.S. House and Senate also have
written letters to President Bush over the past three years opposing any trade
restrictions on Canadian lumber and indicating their support for free trade in
lumber between the U.S. and Canada.
"It's time for our trade policy to reflect fairness to all of the
stakeholders, including consumers, in discussions about trade in lumber," said
Sen. Nickles.
ACAH members include American Homeowners Grassroots Alliance, Catamount
Pellet Fuel Corporation, CHEP International, Citizens for a Sound Economy,
Consumers for World Trade, Freemont Forest Group Corporation, Free Trade
Lumber Council, The Home Depot, International Mass Retail Association,
International Sleep Products Association, Leggett & Platt Inc., Manufactured
Housing Association for Regulatory Reform, Manufactured Housing Institute,
National Association of Home Builders, National Black Chamber of Commerce,
National Lumber and Building Material Dealers Association, National Retail
Federation, and the United States Hispanic Contractors Association.

Consumer and business group
representatives applauded today's preliminary ruling by a World Trade
Organization (WTO) panel that countervailing duties imposed by the U.S.
Commerce Department on Canadian softwood lumber imports should be overturned.
A final WTO decision on the countervailing duties is expected next month
and could be subject to three months of appeals.
"This is a significant victory for consumers and affordable housing in the
U.S.," said Susan Petniunas, a spokesperson for the American Consumers for
Affordable Homes, an alliance of 18 large national associations and companies.
"The U.S. lumber companies once again have lost their argument that Canadian
lumber is subsidized. We urge the Bush administration to accept this decision
and to end its appeals and challenges in the WTO or in NAFTA (North American
Free Trade Agreement). The duties are totally unfair to consumers, and
painful for home buyers."
Canada has filed similar appeals against the duties with NAFTA, which is
not expected to rule until next February.
If allowed to stand, the countervailing duties, along with anti-dumping
duties subject to a separate appeal, would average 27.2 percent and could add
more than $1,000 to the cost of a new home, and price as many as
300,000 families out of the housing market. "While $1,000 may not sound like
much to some people, for many families trying to buy a home for the first
time, it can make a decisive difference between being able to qualify for a
mortgage, or not," Petniunas said. "The time has come for the Administration
to recognize that these duties hurt our need for affordable housing, and for
jobs within lumber consuming industries."
Because there are not enough trees available to produce lumber for home
building in the U.S., Canadian lumber imports are absolutely vital for the
construction of affordable new homes and to make improvements on existing
homes in America. The U.S. relies on Canada and other sources for
approximately 37 percent of the lumber it needs.
Led by International Paper, Potlatch, Plum Creek, Sierra Pacific, Temple
Inland and southern landowners, the Coalition for Fair Lumber Imports filed
petitions with the U.S. Commerce Department more than a year ago alleging that
domestic lumber producers had been harmed by Canadian softwood lumber imports
and asking for countervailing and antidumping duties. The International Trade
Commission approved the Commerce Department's action, and duties were imposed
at the end of May.
More than 110 members of the U.S. House and Senate have signed resolutions
or written letters to President Bush over the past year opposing duties and
indicating their support for free trade in lumber between the U.S. and Canada.
"Since 1983, some of the large U.S. producers and landowners have
periodically charged Canada with subsidizing its lumber industry, and they
have consistently lost when Canada has appealed preliminary decisions,"
Petniunas said. "We believe they will continue to fail on this round of
reviews."